Justia Nevada Supreme Court Opinion Summaries

A casino-hotel filed for bankruptcy. Appellant, the administrative agent for a syndicate of lenders that loaned money to the casino's developers, and Respondents, contractors, subcontractors, and suppliers who asserted statutory liens against the property, entered into a dispute over the priority of their respective liens on the property. The Supreme Court accepted questions certified to it from the bankruptcy court regarding the application of contractual subordination, equitable subordination, and equitable subrogation in the context of a mechanic's lien. Appellant moved to strike Respondents' appendix, contending that the included documents contained information beyond the facts certified to the Court by the bankruptcy court. Respondents opposed the motion, arguing that the additional information was necessary for the Court's understanding of the certified legal questions. The Supreme Court granted the motion to strike after determining that Respondents' appendix was filed solely to contradict the certification order and the complaint, holding that while an appendix may be filed to assist the Court in understanding the matter, it may not be used to controvert the facts as stated in the certification order. View "In re Fontainebleau Las Vegas Holdings" on Justia Law

Appellant, an LLC, purchased an "all-risks" insurance policy for an office building it owned from Insurer. The building was significantly damaged after a general contractor Appellant had hired to renovate the building removed the waterproof membrane on the roof and the building was exposed to substantial rainfall. Insurer denied coverage, concluding that the damage did not result from a covered cause of loss. Appellant sued Insurer, alleging that Insurer breached the insurance policy and denied coverage in bad faith. The district court granted summary judgment in favor of Insurer, concluding that the policy unambiguously excluded from coverage for the damage sustained to the building. The Supreme Court affirmed, holding that the damages sustained by the building were excluded from coverage based on the policy's rain limitation and the contractor's faulty workmanship in repairing the roof. In addition, although the doctrine of efficient proximate cause did not provide relief under the facts of this case, the Court adopted the doctrine of efficient proximate cause in Nevada. View "Fourth St. Place v. Travelers Indem. Co." on Justia Law

At issue in this extraordinary writ proceeding was whether Nev. Rev. Stat. 11.259(1) compels dismissal where the initial pleading in an action alleging nonresidential construction malpractice was served without filing the attorney affidavit and expert report required by Nev. Rev. Stat. 11.258(1) and (3). The Supreme Court granted the writ, holding that a defective pleading served in violation of section 11.258 is void ab initio and of no legal effect and, thus, cannot be cured by amendment. The Court held that because the initial pleadings served by certain real parties in interest in this case did not include the attorney affidavit and expert report as required by section 11.258, those pleadings were void ab initio, and the district court did not have discretionary authority to allow the parties to amend their pleadings to cure their failure to comply with section 11.258. View "Otak Nevada, L.L.C. v. Dist. Court" on Justia Law

After Clark and Sullivan Constructors (C&S), a general contractor, solicited bids for a public works project, Dynalectric, a subcontractor, submitted a bid to perform electrical work on the project. C&S incorporated Dynalectric's bid into its bid for the contract, and C&S was awarded the project. Subsequently, Dynalectric repudiated its obligations to C&S. C&S sued Dynalectric in district court under various theories of liability, including promissory estoppel. The district court entered judgment for C&S on its promissory estoppel claim and awarded C&S $2,501,615 in damages, which represented the difference between Dynaletric's bid and the amount C&S paid the three replacement contractors to complete the work. Dynalectric appealed, contending that the district court applied the incorrect measure of damages. The Supreme Court affirmed, holding (1) the determination of the appropriate measure of damages in any given case turns on considerations of what justice requires and the foreseeability and certainty of the particular damages award sought; and (2) the presumptive measure of damages for a general contractor that reasonably relies on a subcontractor's unfulfilled promise is the difference between the nonperforming subcontractor's original bid and the cost of the replacement subcontractor's performance. View "Dynalectric Co. of Nev., Inc. v. Clark & Sullivan Constructors, Inc." on Justia Law

A group of homeowners brought suit against respondent, a developer and general contractor. Respondent then filed a third-party complaint against appellant, its subcontractor, pursuant to the indemnity clause in their contract. During trial, the district court granted respondent’s motion for judgment as a matter of law. The jury found respondent ninety-nine percent at fault, and the district court held appellant liable for the resulting judgment. Appellant appealed. At issue was whether an indemnity clause in a construction contract obligates the subcontractor to indemnify the general contractor for its partial negligence for constructional defects, regardless of whether the subcontractor is also negligent. The Supreme Court reversed and remanded, holding that the indemnification clause in the parties’ contract did not explicitly or expressly state that appellant would need to indemnify respondent for respondent’s own negligence but linked appellant’s indemnification duties to defects caused by appellant only. View "Reyburn Lawn v. Plaster Development Co." on Justia Law